Needham analyst Laura Martin has maintained their bullish stance on DIS stock, giving a Buy rating yesterday.
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Laura Martin has given her Buy rating due to a combination of factors related to Walt Disney’s financial performance and strategic positioning. The company has reported strong profit growth, largely driven by its direct-to-consumer (DTC) segment and cost management efforts. For the first quarter of fiscal year 2025, Disney’s revenue was $24.7 billion, marking a 5% increase year-over-year, and its operating income surged by 31%, which was significantly higher than expectations.
Martin highlights the strategic shift from Disney’s traditional linear TV to the rapidly expanding DTC platform, which has resulted in a net gain in operating income. The company’s ability to offset declines in its linear TV segment with growth in DTC indicates a successful transition strategy, providing a hedge against industry shifts. The Buy recommendation is also supported by Disney’s projected growth figures and a price-to-earnings ratio of 21, which is considered attractive compared to the broader market average.
Martin covers the Communication Services sector, focusing on stocks such as Walt Disney, Magnite, and Taboola.com. According to TipRanks, Martin has an average return of 5.0% and a 50.20% success rate on recommended stocks.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $139.00 price target.